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Presentation of the structure and culture in an organization.

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  1. 1. ORGANISATION Structures and Cultures
  2. 2. Topics to be covered… <ul><li>ORGANISATIONAL STRUCTURE </li></ul><ul><li>Elements of Organisational Structure </li></ul><ul><li>Common Organisational Designs </li></ul><ul><li>ORGANISATIONAL CULTURE </li></ul><ul><li>Characteristics of Organisational Culture </li></ul><ul><li>Functions of Organisational Culture </li></ul><ul><li>Types of Organisational Culture </li></ul>
  3. 3. Organisational Structure
  4. 4. Elements of Organisational Structure <ul><ul><li>Work Specialisation </li></ul></ul><ul><li>The process of division of labour or is known as work specialisation. </li></ul>
  5. 5. Advantages and Disadvantages of Work Specialisation <ul><li>ADVANTAGES </li></ul><ul><li>Increases work efficiency and productivity </li></ul><ul><li>Repetitive performance increases employee skills </li></ul><ul><li>Less time is spent in changing tasks. </li></ul><ul><li>It is easier and costs less </li></ul><ul><li>DISADVANTAGES </li></ul><ul><li>Causes boredom </li></ul><ul><li>Causes fatigue and stress </li></ul><ul><li>Increases absenteeism </li></ul><ul><li>Increases employee turnover </li></ul>
  6. 6. Elements of Organisational Structure <ul><ul><li>Chain of Command </li></ul></ul><ul><li>Chain of Command is an unbroken line of authority that extends from the top of the organisation to the lowest employee. </li></ul>
  7. 7. Chain of Command <ul><li>Authority of Command </li></ul><ul><li>Authority is the rights given to a person in the chain of command to give orders and expect them to be obeyed. </li></ul><ul><li>Unity of Command </li></ul><ul><li>Unity of Command states that a person should have one and only one superior to whom they must report. </li></ul>
  8. 8. Elements of Organisational Structure <ul><ul><li>Span of Control </li></ul></ul><ul><li>Span of control is the number of subordinates in an organisation who are supervised by managers. </li></ul><ul><li>The span of control determines the number of levels and managers in an organisation. </li></ul>
  9. 9. Elements of Organisational Structure <ul><ul><li>Centralisation and Decentralisation </li></ul></ul><ul><li>In centralised organisaions the top management makes all the key decisions. </li></ul><ul><li>In decentralised organisation the lower-level personnel have a greater say in decision making. </li></ul>
  10. 10. Elements of Organisational Structure <ul><ul><li>Formalisation </li></ul></ul><ul><li>Formalisation is the degree to which jobs within an organisation are standardised. </li></ul><ul><li>On highly formalised jobs employees are merely expected to follow rules and instructions laid down without much or any freedom. </li></ul>
  11. 11. Elements of Organisational Structure <ul><ul><li>Departmentalisation </li></ul></ul><ul><li>In departmentalisation jobs are grouped together so that common tasks can be coordinated. </li></ul>
  12. 12. Departmentalisation <ul><ul><li>Functional Departmentalisation </li></ul></ul>
  13. 13. Departmentalisation <ul><ul><li>Product Departmentalisation </li></ul></ul>
  14. 14. Departmentalisation <ul><ul><li>Geographical Departmentalisation </li></ul></ul>
  15. 15. Departmentalisation <ul><ul><li>Process Departmentalisation </li></ul></ul>
  16. 16. Departmentalisation <ul><ul><li>Customer Departmentalisation </li></ul></ul>
  17. 17. Common Organisational Designs <ul><li>When the elements of orgainsational structure are coordinated together in an appropriate manner they form an Organisational Design </li></ul><ul><li>Some of the common Organisational Designs are: </li></ul><ul><li>The Simple Structure </li></ul><ul><li>The Bureaucracy </li></ul><ul><li>The Matrix Structure </li></ul>
  18. 18. Common Organisational Designs <ul><ul><li>The Simple Structure </li></ul></ul><ul><ul><li>A simple structure organisation is usually a small informal organization in which there is a single individual with unlimited power </li></ul></ul><ul><ul><li>Following are the main characteristics: </li></ul></ul><ul><ul><li>It has a low degree of departmentalisation </li></ul></ul><ul><ul><li>Authority is centralised in a single individual </li></ul></ul><ul><ul><li>It is a ‘flat’ organisation </li></ul></ul><ul><ul><li>There is very little specialisation or formalisation </li></ul></ul>
  19. 19. Advantages and Disadvantages of The Simple Structure <ul><li>ADVANTAGES </li></ul><ul><li>They are fast and flexible. </li></ul><ul><li>They are able to respond quickly to the changes in the environment. </li></ul><ul><li>DISADVANTAGES </li></ul><ul><li>They are risky organisations as everything depends on one person. </li></ul><ul><li>As the organisation grows, it leads to information overload on a single individual. </li></ul><ul><li>Increase in size leads to a slower decision-making process </li></ul>
  20. 20. Common Organisational Designs <ul><ul><li>The Bureaucracy </li></ul></ul><ul><li>Characteristics of a Bureaucracy: </li></ul><ul><li>Employees perform highly routine tasks </li></ul><ul><li>High level of specialisation and employees are grouped into functional departments </li></ul><ul><li>There are many formalised rules and regulations and authority is centralised </li></ul><ul><li>Decision making follows a chain of command and hence can be slow </li></ul>
  21. 21. Advantages and Disadvantages of The Bureaucracy <ul><li>ADVANTAGES </li></ul><ul><li>High level of standardisation leads to high efficiency in performances of activities of employees. </li></ul><ul><li>It can be managed by less talented and less costly managers </li></ul><ul><li>High levels of specialisation reduces production costs </li></ul><ul><li>DISADVANTAGES </li></ul><ul><li>High levels of specialisation leads to conflicts between functional units </li></ul><ul><li>In bureaucratic organisations there is an obsessive concern for rules </li></ul><ul><li>There is no scope for modification </li></ul>
  22. 22. Common Organisational Designs <ul><ul><li>The Matrix Structure </li></ul></ul><ul><li>The matrix structure combines two forms of departmentalisation, functional and product. </li></ul><ul><li>In the matrix design there are three major roles: </li></ul><ul><li>Two-Boss Managers </li></ul><ul><li>Matrix Bosses </li></ul><ul><li>Top Leader </li></ul>
  23. 23. Advantages and Disadvantages of The Matrix Structure <ul><li>ADVANTAGES </li></ul><ul><li>Facilitates coordination </li></ul><ul><li>Exhibits flexibility </li></ul><ul><li>Encourages better communication </li></ul><ul><li>DISADVANTAGES </li></ul><ul><li>Leads to power struggle </li></ul><ul><li>Unclear expectations creates ambiguity </li></ul><ul><li>Role-conflict causes frustration and stress </li></ul>
  24. 24. Organisational Culture
  25. 25. Characteristics of Organisational Culture <ul><ul><li>Innovation </li></ul></ul><ul><li>Some organisations encourage its employees to be creative and generate new ideas. </li></ul><ul><li>However there are other organisations that expect the employees to go strictly by the rules laid down by the company’s manual. </li></ul>
  26. 26. Characteristics of Organisational Culture <ul><ul><li>Stability </li></ul></ul><ul><li>Some organisation emphasize on maintaining the status quo. That is, they prefer to maintain a stable and predictable environment. </li></ul><ul><li>On the other hand some organisation encourage change and resist too much stability. </li></ul>
  27. 27. Characteristics of Organisational Culture <ul><ul><li>People Orientation </li></ul></ul><ul><ul><li>It is the degree to which the management takes into consideration the effect a decision will have on its people before a decision is made. </li></ul></ul><ul><ul><li>For example, Infosys Technologies views its employees as assets and decision are made only after considering what impact it will have on its “assets”. </li></ul></ul>
  28. 28. Characteristics of Organisational Culture <ul><ul><li>Result Orientation </li></ul></ul><ul><ul><li>It is the degree to which management focuses on results rather than methods used to obtain results. </li></ul></ul><ul><ul><li>For example, Reliance Industries is often described as a result oriented company. </li></ul></ul>
  29. 29. Characteristics of Organisational Culture <ul><ul><li>Team Orientation </li></ul></ul><ul><li>It is a degree to which work activities are organised around teams rather than individuals. </li></ul><ul><li>For example, most software companies emphasize team approach towards work. </li></ul>
  30. 30. Characteristics of Organisational Culture <ul><ul><li>Easygoingness </li></ul></ul><ul><ul><li>In some organisations the work atmosphere is relaxed and laid back whereas in some organisations the work atmosphere is charged, aggressive and competitive. </li></ul></ul><ul><ul><li>For example, public sector banks in India have a very easy going attitude towards work. </li></ul></ul>
  31. 31. Characteristics of Organisational Culture <ul><ul><li>Attention to Detail </li></ul></ul><ul><ul><li>It is the degree to which employees in the organisation are expected to show precision, anlysis and attention to detail. </li></ul></ul>
  32. 32. Functions of Organisational Culture <ul><ul><li>Positive Functions </li></ul></ul><ul><ul><li>Sense of identity: </li></ul></ul><ul><ul><li>When employees develop a sense of belongingness to the organisation they feel themselves part of the larger family. </li></ul></ul>
  33. 33. Functions of Organisational Culture <ul><ul><li>Positive Functions </li></ul></ul><ul><ul><li>Commitment to the organisation's mission: </li></ul></ul><ul><ul><li>Culture reminds people what their organisation is all about and encourages greater commitment to the organisation goals and missions. </li></ul></ul>
  34. 34. Functions of Organisational Culture <ul><ul><li>Positive Functions </li></ul></ul><ul><ul><li>Appropriate Standards of Behaviour: </li></ul></ul><ul><ul><li>Organisational Culture guides the words and deeds of employees. </li></ul></ul><ul><ul><li>Culture tells the employees what the should or should not do in a </li></ul></ul><ul><ul><li>given situation. Thus Organisational Culture is an important force </li></ul></ul><ul><ul><li>influencing behavior. </li></ul></ul>
  35. 35. Functions of Organisational Culture <ul><ul><li>Shortcomings of Organisational Culture </li></ul></ul><ul><ul><li>Barrier to change </li></ul></ul><ul><ul><li>Organisational practices which were previously successful may now </li></ul></ul><ul><ul><li>prove to be the cause of failure. Under such circumstances </li></ul></ul><ul><ul><li>Organisational Culture becomes a burden. </li></ul></ul>
  36. 36. Functions of Organisational Culture <ul><ul><li>Shortcomings of Organisational Culture </li></ul></ul><ul><ul><li>Barrier to diversity </li></ul></ul><ul><ul><li>Organisations hire individuals with diverse background because they </li></ul></ul><ul><ul><li>bring various strengths to the workplace. But often strong cultures </li></ul></ul><ul><ul><li>result in organisations becoming insensitive to people who are </li></ul></ul><ul><ul><li>different. </li></ul></ul>
  37. 37. Functions of Organisational Culture <ul><ul><li>Shortcomings of Organisational Culture </li></ul></ul><ul><ul><li>Barrier to mergers and acquisitions </li></ul></ul><ul><ul><li>Often mergers and acquisitions are not successful because of the </li></ul></ul><ul><ul><li>diverse culture of the two organisations. </li></ul></ul><ul><ul><li>For example, due to their different work cultures, managers face a lot </li></ul></ul><ul><ul><li>of problems when a public sector company is taken over by a private </li></ul></ul><ul><ul><li>sector company. </li></ul></ul>
  38. 38. Types of Organisational Culture <ul><ul><li>Dominant Cultures </li></ul></ul><ul><ul><li>The dominant culture is the core values and dominant beliefs </li></ul></ul><ul><ul><li>that are generally shared throughout the organisation. </li></ul></ul><ul><ul><li>When we talk about organisational culture, we refer to the </li></ul></ul><ul><ul><li>dominant culture prevailing in the organisation. </li></ul></ul>
  39. 39. Types of Organisational Culture <ul><ul><li>Subcultures </li></ul></ul><ul><ul><li>Subcultures are minicultures within an organisation. These </li></ul></ul><ul><ul><li>minicultures operate within the larger, dominant culture. </li></ul></ul><ul><ul><li>Subcultures are usually an outcome of occupational, </li></ul></ul><ul><ul><li>professional, functional differences or geographic distances. </li></ul></ul>
  40. 40. Types of Subcultures <ul><ul><li>Academy </li></ul></ul><ul><li>Organisations with this kind of a culture hire new college </li></ul><ul><li>graduates and train them in a wide variety of jobs. Such an </li></ul><ul><li>organisational culture provides the employees with opportunities to master different jobs. </li></ul>
  41. 41. Types of Subcultures <ul><ul><li>Club </li></ul></ul><ul><li>Organisations that are highly concerned with getting people to fit in and be loyal are referred to as a club. The organisation promotes form within and highly values seniority. </li></ul>
  42. 42. Types of Subcultures <ul><ul><li>Baseball Team </li></ul></ul><ul><li>In such cultures employees tend to be entrepreneurs who are willing to take risks and are handsomely rewarded for their success. </li></ul><ul><li>This type of culture exists in fast-paced high-risk organisations such as investment banking, advertising. </li></ul>
  43. 43. Types of Subcultures <ul><ul><li>Fortress </li></ul></ul><ul><li>The fortress type of culture exists in organisation that are facing a hard time in fighting for their survival. </li></ul><ul><li>Employees who enjoy the challenge of fighting with their backs against the wall and do not mind the lack of job security enjoy working in this kind of culture. </li></ul>
  44. 44. Conclusion
  45. 45. Activity